Which of the following statements is true regarding a negotiable instrument?
A. It should be signed by the payee.
B. It need not state a fixed amount of money.
C. It should not require any undertaking other than the payment of money.
D. It can be either written or oral.
C
It should be B
The correct statement regarding a negotiable instrument is:
C. It should not require any undertaking other than the payment of money.
A negotiable instrument is a written document that promises the payment of a specific amount of money to the bearer or to a specific person. It should not impose any other obligation or undertaking on the person who is required to pay.
To determine the correct answer to this question, let's break down the options and eliminate the incorrect ones.
A. "It should be signed by the payee." This statement is incorrect. A negotiable instrument should be signed by the maker or drawer of the instrument, not the payee. The payee is the person to whom the instrument is payable.
B. "It need not state a fixed amount of money." This statement is also incorrect. A negotiable instrument must state a fixed amount of money, which can be easily determined.
D. "It can be either written or oral." This statement is false. A negotiable instrument must be in writing to be legally enforceable.
Now, let's consider option C. "It should not require any undertaking other than the payment of money." This statement is true regarding a negotiable instrument. A negotiable instrument should not impose any other obligation or condition apart from the payment of a specified amount of money. This is one of the key characteristics of negotiability.
Therefore, the correct answer is C.